Q3 sales down 4 vs expected 12 decline
Sales rise in Americas, decline in Asia Pacific and China
Company says more likely to make annual profit now
Shares jump 12

Jan 24 Reuters Burberry reported a smaller than expected 4 drop in quarterly comparable store sales on Friday, helped by a stronger holiday season in the United States, an encouraging step in the British luxury brand39;s turnaround efforts.

Burberry shares jumped 12 as investors welcomed the sign of improving demand, adding to hopes that luxury shoppers39; confidence is returning. Shares in luxury conglomerate Kering also gained 8, while sector leader LVMH was up 3.

Burberry CEO Joshua Schulman, who took over at the struggling brand six months ago, said its festive advertising campaigns, which highlighted its trademark trench coats and scarves more than bags and shoes, resonated with a broad range of customers.

We are extremely pleased with the results, Schulman told journalists on a call. We have seen new customer growth in the month of December for the first time in over two years, and we39;ve seen an increase in the brand desirability as well.

Schulman39;s strategy is to put the focus on Burberry39;s bestknown products to win back customers he said were alienated by less recognisable designs and higher prices. The company said cashmere scarves, priced between 420 and 990 pounds 5221,230, as well as outerwear, outperformed globally.

Analysts had expected a 12 decline in comparable sales for…